(Bloomberg) — Kone Oyj agreed to acquire TK Elevator for €29.4 billion (R$172 million), including debt, transforming the Finnish company into the sector’s dominant leader and increasing pressure on its rivals.
Kone announced a cash and stock deal for TK Elevator, which is controlled by Advent and Cinven, in a statement on Wednesday that confirmed an earlier Bloomberg News report.
This is one of the largest private equity exits ever recorded in Europe and the largest deal in Finnish history, practically doubling Kone’s market value, currently around €30 billion, and catapulting the company above competitors such as Otis Worldwide Corp., from the USA, and the Swiss Schindler Holding AG.
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Kone shares fell as much as 5.7% in Helsinki, the biggest drop in more than two months, erasing gains recorded earlier.
Kone has been interested in TK Elevator for years. It failed in a previous attempt to buy the business in 2020, when it teamed up with CVC Capital Partners Plc before losing the bid to Advent and Cinven.
The deal will give Kone greater exposure to the US market, where TK Elevator has an established presence in elevator installation and maintenance. Kone has a stronger presence in Asia, where it currently derives about 35% of its revenue.
For Advent and Cinven, the sale represents a relevant exit at a time when private equity managers are under pressure to return resources to their investors. But the share in shares, larger than usual, could complicate the picture.
Advent and Cinven will receive a cash payment of €5 billion as part of the sale. The remainder will be paid in Kone shares, which they will have to sell little by little, in blocks, after a lock-up period of 180 days. This leaves them exposed to market shocks arising from ongoing geopolitical tensions and could lengthen the timeframe for a complete exit from the business.
Other private equity firms have faced difficulties selling some assets amid market volatility in 2026. Bloomberg News had previously reported that the sale process of Thinkproject, by EQT AB, and Unit4, by TA Associates, is among those that have encountered obstacles. In another case, Hg postponed Visma’s initial public offering (IPO).
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Kone and TK set to become the world’s largest elevator manufacturer
Philippe Delorme, president and CEO of Kone, said the acquisition of TK Elevator will accelerate the company’s “strategic shift towards services and modernization”.
The transaction could face antitrust hurdles, and Kone may have to consider selling assets to convince regulators, with executives estimating that process could take up to 18 months.
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“We have done a lot of work and are confident that the transaction will receive all necessary regulatory approvals, preserving the strategic logic of the combination,” Delorme said in a conference call. “We are prepared to work constructively with regulators to ensure full compliance.”
He declined to give details when asked by analysts and journalists, but said that this time Kone has a “much better understanding” of the target after working closely with the sellers.
“We are confident because we know exactly what needs to be done,” said Delorme. “We align with the leaders on the other side, with respect and good humor to make things work together.”
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What Bloomberg Intelligence says:
“Kone’s €29.4 billion TKE deal — higher than expected — raises the execution bar… The industrial logic is strong — expanding US exposure, service density and margin recovery potential relative to Otis — but significant dilution, increased debt and prolonged antitrust risk leave less room for error. Antitrust analysis could force divestitures and lengthen approval deadlines, risking value destruction by reducing synergies and limiting upside potential of the business.”
— Omid Vaziri, Bhawin Thakker, analysts de setor.
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Negotiations were already underway in September, according to a Bloomberg News report.
In 2020, a group of investors led by Advent and Cinven won the dispute with an offer of €17.2 billion, beating Kone and CVC. At the time, the idea was for CVC to take over TK Elevator’s European operations to reduce antitrust obstacles.
Kone’s controlling shareholder, billionaire Antti Herlin, will continue to rule the company with more than 50% of voting rights.
Delorme will lead the combined group, which will be based in Finland and will be almost double Kone’s current size. The combined company will have more than 100,000 employees in around 100 countries and is expected to generate annual sales of approximately €20.5 billion.
The new company will be called Kone, but the brands used will vary from country to country, Delorme said.
Read the press release.
Kone contracted bridge loans with Bank of America Corp. and BNP Paribas SA, which intends to refinance with resources from new debt issues. The goal is to maintain a solid investment-grade credit rating for the combined company, combining Kone’s healthy balance sheet with TK Elevator’s leveraged books, according to Chief Financial Officer Ilkka Hara.
The deal is expected to close, in a best-case scenario, in the second quarter of 2027, subject to regulatory approval in multiple jurisdictions, Kone said.
Bank of America advises Kone. Goldman Sachs Group Inc. works with TK Elevator. BNP also provided a fairness opinion to Kone’s board of directors.
Alat, a unit of the Saudi sovereign wealth fund Public Investment Fund, acquired a 15% stake in TK Elevator last year.
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